[Marius1585]

Working through finalizing an order for 2024 G80, scheduled for production late in April.

Negotiating some amount under MSRP, but the dealership insisting on 6.29% interest through BMW, admitting that 1% is direct to their pocket.

Not offering an option to finance at BMW 5.29, but telling me that I could pay cash or finance elsewhere, but price would be MSRP.

Any advice on how to approach? Anyone has success in negotiating to BMW offered rate? I can finance elsewhere for similar, but would prefer to keep with BMW at the BMW rate.

[50shadesofhockenheim]

Get it for under MSRP at their marked up rate and then go refinance it for lower if you can.

[f30dreamin]

Assuming you have decent credit, why don’t you try a different avenue. Check with your bank, check credit unions, bank rate dot com, and I think there is a whole section that talks about this.

[Berzerker]

Originally Posted by Marius1585

Working through finalizing an order for 2024 G80, scheduled for production late in April.

Negotiating some amount under MSRP, but the dealership insisting on 6.29% interest through BMW, admitting that 1% is direct to their pocket.

Not offering an option to finance at BMW 5.29, but telling me that I could pay cash or finance elsewhere, but price would be MSRP.

Any advice on how to approach? Anyone has success in negotiating to BMW offered rate? I can finance elsewhere for similar, but would prefer to keep with BMW at the BMW rate.

Take any rebates and discounts they're giving you, then go refinance it. If they tell you anything like "you have to keep it open for 3-4 months or you lose the rebates" it's 100% lies and ignore it.

[ADDONE]

Originally Posted by Berzerker

Take any rebates and discounts they're giving you, then go refinance it. If they tell you anything like "you have to keep it open for 3-4 months or you lose the rebates" it's 100% lies and ignore it.

I agree with this approach, but you could also tell them you’d be willing to keep the loan in place for 3-4 months if they give you the base rate with no markup.

[G1m3c]

Originally Posted by Marius1585

Working through finalizing an order for 2024 G80, scheduled for production late in April.

Negotiating some amount under MSRP, but the dealership insisting on 6.29% interest through BMW, admitting that 1% is direct to their pocket.

Not offering an option to finance at BMW 5.29, but telling me that I could pay cash or finance elsewhere, but price would be MSRP.

Any advice on how to approach? Anyone has success in negotiating to BMW offered rate? I can finance elsewhere for similar, but would prefer to keep with BMW at the BMW rate.

Tell them you’ll walk out of the deal if they won’t meet you at 5.29, they’ll usually crack if you insist on leaving and going to another dealership

[jimbethesda]

This is a math question. The only way to answer it is to tell us how much of a discount you’ll get if you get a loan from them.

[road rage richie]

How much is the discount? How much are you borrowing: $80,000 @ 5.29 = $1520.53 = $11,221.04 in interest over 60 months.
$80k @ 6.29 = $1557.42 = $13,446.09

There are no prepayment penalties in NY. No idea about MO. No idea about refinance interest rates - are they the same as new? Seems like used car rates are higher than new from the same institutions but have no idea about refi.

I think it takes a few months for the title to actually transfer as well.

There is no M3 inventory by me really. Most dealers here would be able sell an M3 quickly and probably would not care if I walked.

At then end of the day its about number vs desire.

[Marius1585]

Originally Posted by G1m3c

Tell them you’ll walk out of the deal if they won’t meet you at 5.29, they’ll usually crack if you insist on leaving and going to another dealership

Unfortunately, this approach won't work - I've done that 4 other times and didn't have a car to take home - they are a pretty high volume dealer, and don't have issues selling vehicles. Truthfully - if I don't pick this one up, they will just spec a competition and sell it within the next few weeks. Other dealerships in the area don't have an allocation (and don't get them often).

[Marius1585]

Originally Posted by road rage richie

How much is the discount? How much are you borrowing: $80,000 @ 5.29 = $1520.53 = $11,221.04 in interest over 60 months.
$80k @ 6.29 = $1557.42 = $13,446.09

There are no prepayment penalties in NY. No idea about MO. No idea about refinance interest rates - are they the same as new? Seems like used car rates are higher than new from the same institutions but have no idea about refi.

I think it takes a few months for the title to actually transfer as well.

There is no M3 inventory by me really. Most dealers here would be able sell an M3 quickly and probably would not care if I walked.

At then end of the day its about number vs desire.

The discount is not major. about 1% off, vehicle is low to mid 80's with delivery charge. I would likely finance $50-$55k. No prepayment in MO either.

[Marius1585]

Originally Posted by f30dreamin

Assuming you have decent credit, why don’t you try a different avenue. Check with your bank, check credit unions, bank rate dot com, and I think there is a whole section that talks about this.

Tried most places - and best I've been able to find so far is my current credit union at 5.99. BMW FS has a pretty competitive rate at the moment, unless there's a lender with great rates that I'm missing.

[Vmaxx]

Originally Posted by Marius1585

Tried most places - and best I've been able to find so far is my current credit union at 5.99. BMW FS has a pretty competitive rate at the moment, unless there's a lender with great rates that I'm missing.

Then use this as leverage. If they are firm at not offering you the base/buy rate, tell them you already have a better rate at your credit union and ask them to beat it and meet you halfway at 5.79%.

[road rage richie]

So borrowing $50K at 5.29 vs 6.29 with $800 or so in savings is basically a wash. If I was going to pay off the car really quickly I would take the discount and the higher rate. If I was going the whole 60 months I would probably go MSRP @ 5.29
$50K loan is 1390.80 cheaper with out investing the savings.

[Limegrntaln]

Dealers that do this, because they are high volume dealers, is trash. I've worked in the car business. I have a lot of friends in the car business. We all know its scammy. BMW is already working on the Tesla/ Rivian sales model, or buying manufacturer direct. I think we will all be better off.

['Cane]

Originally Posted by Limegrntaln

Dealers that do this, because they are high volume dealers, is trash. I've worked in the car business. I have a lot of friends in the car business. We all know its scammy. BMW is already working on the Tesla/ Rivian sales model, or buying manufacturer direct. I think we will all be better off.

The car dealers lobby is very strong with deep pockets, and they’ll resist as long as they can. They don’t want it, and will spend money to keep the option of f’ing over the consumer.

[Limegrntaln]

Originally Posted by 'Cane

The car dealers lobby is very strong with deep pockets, and they’ll resist as long as they can. They don’t want it, and will spend money to keep the option of f’ing over the consumer.

I see that happening for sure. It may be decades before something like this is even possible. It was easy for Tesla and Rivian. No franchisees would have originally taken the risk to open a dealership without first knowing they were even going to sell.

[Adler11th]

I had successfully negotiated middle road of 0.5% for them, and usually get a handshake(when there is no special rate from FS). The thing was, I got decent discount for the car they had on the lot, I didn’t get 100% of desired features but I saved a load of cash, and quite happy. Now there is also a way to apply for financing with BMW FS directly, I wonder if that route will halp you to save on a rate. I didn’t try it myself. Perhaps someone tried it and can chime in?

[jimbethesda]

Originally Posted by Adler11th

I had successfully negotiated middle road of 0.5% for them, and usually get a handshake(when there is no special rate from FS). The thing was, I got decent discount for the car they had on the lot, I didn’t get 100% of desired features but I saved a load of cash, and quite happy. Now there is also a way to apply for financing with BMW FS directly, I wonder if that route will halp you to save on a rate. I didn’t try it myself. Perhaps someone tried it and can chime in?

The BMW FS “application” is basically a sales tool for dealers. It forwards your application to the dealer. There might be a prequalification process that BWM does before sending it to the dealer (I’m not sure), but for sure you can’t go direct to BMW. You can thank the independent dealer lobby for that.

[road rage richie]

Originally Posted by 'Cane

The car dealers lobby is very strong with deep pockets, and they’ll resist as long as they can. They don’t want it, and will spend money to keep the option of f’ing over the consumer.

Direct Car sale on not permitted in a host of states. In Elon's favorite state: Texas, all Tesla sales are done out of state. Thank god for life's little ironies.

On the other hand it would be the end of the claimed 10% discount on G82/3's. "Efficient" Monopolies can go either way (ATT before MCI) or Opec in the 1970's. Mostly its bad & as odious as car dealers can be I know people dont love getting a Tesla repaired. The dealer has an incentive to investigate every possible claim under warranty. BMW direct would have the opposite. Buy a Mercedes instead?